Directors and the Sole Shareholder. This issuance had previously received NHPUC approval on
Order No. 26,101, dated February 2, 2018, which authorized up to $32.5 million in bonds via
multiple issuances for the years 2018-2021.
On May 6, 2020, the NHPUC issued Order No. 26,354 which permitted Pennichuck Water Works,
Inc. to borrow up to $2,563,662 from the federal Small Business Administration Paycheck
Protection Program. This loan includes a 2-year maturity at an interest rate of 1 percent, which
includes a provision in which a portion or all of the loan can be forgiven if all employees are kept
on the payroll for eight weeks upon disbursement of the loan proceeds. The loan proceeds were
disbursed by TD Bank, Inc., on behalf of the Small Business Administration on May 8, 2020. The
PPP loan was approved by the Pennichuck Corporation Board of Directors and the Sole
Shareholder. Approved forgiveness of this obligation has not yet been requested by the Company
but will be filed for during the early part of 2021.
On August 26, 2020, the Company’s Pennichuck Water Works, Inc. (PWW) subsidiary issued
approximately $73.6 million of taxable bonds through the NH Business Finance Authority to:
(1) advance refund and refinance PWW’s series 2014A, 2015A, and 2015B bonds, (2) early
retire an AULT bank loan set to mature on March 1, 2021 with a “bullet” maturity due at that
date, (3) complete the replenishment of the MOERR RSF for PWW back to its authorized
imprest value, and (4) to repay the Pennichuck Corporation Working Capital Line of Credit for
monies borrowed to bolster the MOERR RSF at PWW while awaiting rate relief from this
bonding event and the current PWW Rate Case. The bond issuance was approved by the
Pennichuck Board of Directors and the Sole Shareholder. This issuance had previously received
NHPUC approval on Order No. 26,383 dated July 24, 2020, which authorized up to
$75.0 million in bonds.
In December of 2020, the Company’s existing Working Capital Line of Credit (WCLOC) and
Pennichuck Water’s Fixed Asset Line of Credit (FALOC) were renewed. The WCLOC was
extended and renewed for an additional year and a half, expiring on June 30, 2022, whereas the
FALOC was extended and renewed for an additional two and a half years, expiring on June 30,
2023. Additionally, as a part of the renewal and extension of the FALOC, the capacity of that
facility was increased from $10 million to $12 million, while the Company’s WCLOC remains at
$4 million. Pennichuck East’s Fixed Asset Line of Credit (PEU FALOC) was renewed and
extended for an additional three years on November 24, 2020, expiring on September 30, 2023,
at its current facility level of $3 million. The two Fixed Asset Lines of Credit (FALOC and PEU
FALOC) are used to fund construction work in progress on capital projects, which will be
refinanced into long-term debt term loan obligations or issued bond indebtedness, annually. The
renewal and extension of all of these facilities were approved by the Company’s Board of
Directors, the Shareholder, and in the case of the two FALOC facilities, the NHPUC.
Qualified Capital Project Adjustment Charge (QCPAC)
On February 11, 2021, Pennichuck Water filed a petition with the NHPUC for a 5.44% QCPAC
surcharge on all capital improvements completed and placed in service by Pennichuck Water in
2020. The Commission has not issued an Order approving this requested surcharge. When the
Commission issues the Order, the surcharge will become effective retroactively to customers on
a “service rendered basis” back to April 1, 2021, which is the date for which PWW’s annual
